Dubai named among property hotspots for 2013

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Dubai's villa property market is forecast to be one of the strongest performers in the world next year, according to Knight Frank.

The global real estate consultancy named the emirate alongside Moscow and Miami as the prime property markets likely to shine brightest next year.

It said villa prices in Dubai were set to be pushed higher the limited supply of luxury homes, especially on Palm Jumeirah and Emirates Hills.

"Dubai provides another good news story; here we expect prices in the luxury villa market to rise by between 5-10 percent in 2013," Knight Frank said in a new report.

"The volume of enquiries from professionals relocating from the UK and Asia is rising while the supply of high quality family homes is largely static," it added.

The report also said that Indian and Iranian buyers were driving the demand for luxury homes in Dubai.

Knight Frank said that villa prices in the emirate had increased between 10-20 percent in the first three quarters of 2012.

According to its report, prime residential property prices in 14 cities worldwide are forecast to rise by 2.5 percent on average in 2013.

It said it only expected to see prices decline in three markets - Paris, Geneva and Shanghai – but in each case by less than five percent.

Knight Frank warned that a sharp slowdown in the global economy is the highest risk for the world’s prime residential markets closely followed by government cooling measures.

Kate Everett-Allen, head of Knight Frank’s international research team, said: "The search for unique 'trophy' homes will gather pace in 2013 due in part to the increasingly high standard of new projects.

"Tall towers in the main gateway cities are already capturing the attention of an expanding number of HNWIs and we expect this trend to intensify."

She added: "Since Lehman Brother’s collapse the world’s luxury markets have come full circle. The global downturn meant luxury prices tumbled as market confidence ebbed away but within 12 months key markets such as London, Hong Kong and Shanghai were rallying once more.

"Prime property has done more than just weather the economic storm and outperform its mainstream counterparts, it has prospered as a direct result of the uncertain economic climate."

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Posted by: Umar Saeed

Yes Dubai is the hotspot for coming years due to the successful bid for the expo 2020. The prices and rents have already started to rise.

Posted by: Red Snappa

"Knight Frank warned that a sharp slowdown in the global economy is the highest risk for the world?s prime residential markets closely followed by government cooling measures."

Already happening, also what about the security situation in the region KF? worthy of mention perhaps? Investors in large properties of the nature described will not be arriving in their thousands, plus they look for value and security of tenure, easy access to the country and their assets i.e. walk-in with a quick flash of the passport.

However, we shall see, estate agents think the same the whole world over, with the briefest of nods to the riskier fundamentals. And a happy and prosperous New Year to us all, our mansions await!

Posted by: Irene

I know this is everyone's dream here in Dubai including me but reality is, at this present time it is no hot spot to buy in Dubai in view of the still high prices compared to the rest of the world.
I hear many many people around me buying in Europe because the value is so high compared to what you get here in Dubai.
For a 2 or 3 bedroom apartment on the Palm or JBR you get a wonderfull house + land +papers, anywhere, North, central, South, pick your choice!...everyone will notice this on internet, so these stupid headlines wanting to brainwash people should be refrained It will come,because Dubai is a dream place, but not yet, in 3 to 5 years....This only has a counter effect of showing how the real estate is deparate, accept the market how it is, Dubai is a wonderful place to live but at present there are no hot spots anywhere, maybe south america, I am told but....as nobody knows what future will bring in this year to come., everyone is rather careful as money is hard these days

Posted by: Abdul hafeez Sheikh

Dubai is now the center of Industrial activities for high tech industries . The establishment of Jet engine overhaul industry will enhance the need for residential property . Similarly if other Multinationals establish their industrial branches in Dubai then the property will automatically gain upward trends . The government should facilitate more the High tech Industry in Dubai which will bring high salary engineers and technicians ,this will ultimately increase the value of the property in Dubai

Posted by: DubaiOverpriced

Villa increases year on year of 20% are ridiculous. The market is full of speculators.

This market will only ever stabilize if people are granted permanent residence after working or living in Dubai for a set number of years.

Right now, it is nothing more than a casino.

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